ETF Research Center

VALQ tracks an index of US large-cap companies with value and income characteristics.

FUND BASICS
Category	US Equities
Fund Sponsor	American Century
Website	ipro.americancentury.com
Inception date	Jan 11, 2018
Assets (mns)	$139
Currency	USD
Expense ratio	29 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Tiered
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	234
Wgt avg mkt cap (mns)	$113,254
Large cap (>$10bn)	74.0%
Mid cap ($2-10bn)	26.0%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	18.3 %
AT&T INC	2.4 %
APPLE INC	2.3 %
ALPHABET INC. CLASS C	2.0 %
INTL BUSINESS MACHINES CORP	2.0 %
HP INC.	1.9 %
INTEL CORP	1.7 %
TARGET CORP	1.6 %
PRUDENTIAL FINANCIAL INC	1.6 %
SEAGATE TECHNOLOGY	1.5 %
MICRON TECHNOLOGY INC	1.4 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.1 %
	IRELAND	3.3 %
	BRITAIN	0.9 %
	SWITZERLAND	0.7 %
	BERMUDA	0.4 %
	PUERTO RICO	0.2 %
	ISRAEL	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
24.5%	24.5%	--	--	5.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.93	94%
MSCI EAFE	0.94	72%
MSCI Emg. Mkts.	0.67	56%

Technical Indicators
Recent close	$43.80
30d moving avg.	$42.96
Annualized volatility	14.0%
Short interest (ETF)	0.9%
Relative strength (RSI)	73

Liquidity measures
Avg. volume (thou.)	10
Turnover	0.3%
Bid/Ask (% of price)	0.14%
ADV underlying (mns)	$59,476

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the American Century STOXX U.S. Quality Value ETF based on the alternatives' overlap in portfolio holdings with VALQ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

VALQ

Expense:

29 bp

ALTAR Score™:

8.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VALQ
Ticker	Fund Name	Overlap¹ vs VALQ (%)	Expense ratio (bp)	Savings vs VALQ (bp)	ALTAR Score™ (%)	ALTAR vs VALQ (%)
JVAL	JPMorgan U.S. Value Factor	39.3	12	17	8.2	-0.5
FLAG	Forensic Accounting	38.6	152	-123	8.1	-0.6
FVAL	Fidelity Value Factor	35.9	29	0	7.6	-1.1
IUS	Invesco Strategic US	35.9	19	10	6.2	-2.5
RWL	Invesco S&P 500 Revenue ETF	35.8	39	-10	7.2	-1.5
FNDX	Schwab Fundamental Large Cap	35.3	25	4	6.2	-2.5
VLU	SPDR S&P 1500 Value Tilt	35.0	12	17	7.0	-1.7
VLUE	iShares MSCI USA Value Factor	34.5	15	14	10.4	+1.8
PRF	Invesco FTSE-RAFI U.S. 1000	34.0	39	-10	6.3	-2.4
FNDB	Schwab Fundamental Broad Mkt	33.9	25	4	6.2	-2.5
OVLU	Invesco Russell 1000 Value Factor ETF	33.4	19	10	7.5	-1.2
ESGL	Invesco ESG Revenue ETF	32.7	40	-11	7.5	-1.1
IVE	iShares S&P 500 Value	32.1	18	11	6.8	-1.9
SPYV	SPDR Portfolio S&P 500 Value	32.1	4	25	6.9	-1.8
FLQL	Franklin LibertyQ U.S. Equity	32.0	15	14	6.4	-2.3
AFLG	First Trust Active Factor Large Cap	31.9	55	-26	6.1	-2.6
VTV	Vanguard Value ETF	31.9	4	25	6.9	-1.8
IUSV	iShares Core U.S. Value	31.8	4	25	7.0	-1.7
DIVB	iShares U.S. Dividend & Buyback	31.7	25	4	6.4	-2.3
DTD	WisdomTree Total Dividend	31.5	28	1	6.4	-2.3

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	American Century STOXX U.S. Quality Value
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	17.8	%
Divided by: Fwd. P/BV	2.0	x
Less: Expense ratio	29	bp
Equals: ALTAR Score	8.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.65	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.